Heart of Midlothian FC, alongside administrators BDO LLP, has failed to find a suitable buyer to pay off its £15 million bank debt, owed to beleaguered Lithuanian creditors – Ukio Bankas.

The Lithuanian bank, which owns a 29.9 per cent shareholding in the club, owns a floating charge on Hearts stadium Tynecastle as a security on a loan.

Despite promising announcements from BDO, the reality of a £15 million debt to foreign creditors - is that any small CVA proposals will be rejected in favour of selling off Tynecastle to alleviate the £400 million debt the Bank owes to the Central Bank of Lithuania.

Three proposals for a CVA have been submitted to administrators, with all three later being rejected.

Speaking on the news, Bryan Jackson, Joint Administrator of Heart of Midlothian FC and a partner in the Business Restructuring team at BDO LLP, said:  “We are continuing to work with the administrator of Ukio Bankas and the bidders to enable the club to exit administration as a going concern.

“However, it should not be forgotten that it is the duty of the administrator of Ukio Bankas to achieve the best financial result for the bank’s creditors, and he will act to ensure that this happens.

“Liquidation is always a possibility when a business is in administration, but we are confident that we can work with the bidders to produce an outcome that saves the club and provides an acceptable return to the creditors of Ukio Bankas.”

The club currently owes a total of £25 million, with one loan of £15 million secured against the club’s Edinburgh-based ground, The Tynecastle Stadium, which is now controlled by the administrators of Ukio Bankas.

The Bank, alongside parent company and 50 per cent stakeholders investment firm UBIG, was once owned by former Hearts owner Vladimir Romanov – however both firms are now insolvent.

The Lithuanian outfit currently owes nearly £400 million to the Central Bank of Lithuania, which has suspended the company from trading.

Administrators now control Ukio Bankas, with the process of appointing a similar arrangement to oversee the liquidation of the parent company, UBIG, beginning last week.

Speaking in a statement, Ukio Bankas administrators, said: “Hearts administrator BDO received three offers from investors, none of which were acceptable.

“Last week the potential investors presented improved offers, however, the main creditor’s expectations were still not met. Ukio Bankas approved the administrator’s proposal to continue negotiations with the two potential investors. The third investor’s - HMFC Limited - offer was rejected.”